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Cannon Trust School 2- Case
Study Questions and Correct Answers
1. In 2023, the annual gift tax exclusion is:
A. $17,000 per done for gifts of present interest.
B. $34,000 per done for gifts of present interest.
C. $15,000 per done for all gifts, present or future interest.
D. $5,000 or 5% of the corpus, whichever is greater. Ans: A.
$17,000 per done for gifts of present interest.
2. In 2019, having made no prior gifts, Don began making annual
gifts to his son of $250,000. What is the first tax year for which he
will have to file a gift tax return?
A. 2019
B. 2020
C. 2021
D. 2022 Ans: A. 2019
3. Which of the following is TRUE of lifetime taxable gifts?
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A. The unified credit may not be used in whole or in part.
B. Taxes due as a result of the gift are the responsibility of the
donee.
C. $30,000 annual present interest exclusion per done is available.
D. The unified credit may be used to the extent available to
eliminate or reduce the tax due. Ans: D. The unified credit may be
used to the extent available to eliminate or reduce the tax due.
4. Gifts to which of the following trusts will NOT qualify as a gift
of present interest for the annual exclusion?
A. Irrevocable trusts with Crummy provisions
B. 2503(c) trusts for minors
C. Simple trusts
D. Complex trusts Ans: D. Complex trusts
5. Since the Gift and Estate Tax rates are unified which of the
following best describes the relative advantages of gift versus
estate taxes?
A. There are no tax advantages to making lifetime gifts.
© 2025 All rights reserved
Cannon Trust School 2- Case
Study Questions and Correct Answers
1. In 2023, the annual gift tax exclusion is:
A. $17,000 per done for gifts of present interest.
B. $34,000 per done for gifts of present interest.
C. $15,000 per done for all gifts, present or future interest.
D. $5,000 or 5% of the corpus, whichever is greater. Ans: A.
$17,000 per done for gifts of present interest.
2. In 2019, having made no prior gifts, Don began making annual
gifts to his son of $250,000. What is the first tax year for which he
will have to file a gift tax return?
A. 2019
B. 2020
C. 2021
D. 2022 Ans: A. 2019
3. Which of the following is TRUE of lifetime taxable gifts?
© 2025 All rights reserved
, 2 | Page
A. The unified credit may not be used in whole or in part.
B. Taxes due as a result of the gift are the responsibility of the
donee.
C. $30,000 annual present interest exclusion per done is available.
D. The unified credit may be used to the extent available to
eliminate or reduce the tax due. Ans: D. The unified credit may be
used to the extent available to eliminate or reduce the tax due.
4. Gifts to which of the following trusts will NOT qualify as a gift
of present interest for the annual exclusion?
A. Irrevocable trusts with Crummy provisions
B. 2503(c) trusts for minors
C. Simple trusts
D. Complex trusts Ans: D. Complex trusts
5. Since the Gift and Estate Tax rates are unified which of the
following best describes the relative advantages of gift versus
estate taxes?
A. There are no tax advantages to making lifetime gifts.
© 2025 All rights reserved
